SCO is funded by MicroSuck, in a desperate attempt to hide the superiority of Linux from the corporate world. SCO is rumored to be ruled by an evildemon, but details are sketchy, as it apparently eats visitors.

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SCO's Products

SCO UnixWarez/OpenSewer

SCO's Unix was derived from the original Unix from Bell Labs (Unix time wasting systems).

Nowadays SCO's Unix name is Unix Time Machine System. It's name is more appealing for people seeking an old fashioned Unix, just like in the old days.

SCO (Caldera) "Open"Linux

SCO also produced a Linux distribution before they went ballistic and started suing everyone's ass.
Regarding the Linux lawsuit, they declared that they won't make any special exception for the users of SCO Linux,and that they will also sue them.
They also said that they had already a large list of SCO Linux users, and that these users should expect to be sued.

If your code contains the word include, BEWARE! You might be sued because you have copied code from SCO!

SCO's lawsuit

Exhibit A: Undeniable evidence that 80% of Linux was directly copied from Unix.

SCO hold some of the copyright of the original Unix (Unix time sharing system), so they have a lot of lawsuits regarding this copyright.

Napster

SCO was paid by the RIAA and the MPAA for a series of lawsuit against file sharing

SCO claimed that Napster contained code from Unix, in fact:

file sharing was too similar to time sharing;

they were also accused of having copied the Unix philosophy "to represent everything as a file". They in fact have represented a lot of things (such as music, video, programs) as files in order to make easier their sharing.

Napster contained the letter "S" a SCO copyrighted/owned letter.

Napster has lost the lawsuit. Then they started to sue Kazaa.

FSF

SCO was paid by Microsoft for a series of lawsuits against the FSF.
SCO claimed that:

"code sharing" and "share with your neighbours" was too similar to "time sharing";

the GNU project contained code from Unix.

The FSF name has the letter "S" in it, a SCO copyright/owned trademark

While the FSF was condemned for the use of "code sharing" and "share with your neighbours", they couldn't find any piece of code from Unix. SCO has made some wrong assumptions about the GNU project.

SCO set up us the source code.

They thought that Stallman hacked into the mega-corporations and stole code, but even if he has done this
while he was part of the MIT hacker group, he stopped such activities and did not include any stolen code inside the GNU project.
This decision was taken while drafting the the GPL; more details here and here

When the experts examined the code, it was found that the FSF's code was a lot better than SCO's Unix one. Then FSF threatened SCO to publicise it and to make their code GPL, in order not to have any further lawsuits on the Unix philosophy. FSF also threatened to make Windows GPL (Microsoft did include GPLed code in SFU), so they retracted all the claims about the Unix philosophy.

SCO publicly declared "While it is uncertain if Linux contains code from Unix, we are sure that the Hurd doesn't, so you are free to use Hurd without threat."